PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩300 per share · Prices as of the 2026-10-02 close
Kyochon F&B posted a marked improvement in revenue and operating profit in 2025, but rising raw material costs and avian influenza have pressured operating margins again in 2026.
2025 consolidated revenue reached KRW 517.4 billion with operating profit of KRW 35.0 billion, a sharp improvement that widened owners' net profit as well.
Operating profit in both Q1 and Q2 2026 declined year-on-year, as prolonged avian influenza and rising raw material costs weighed on profitability.
Domestic franchise average store sales and closure rates remain among the best in the industry, though new store openings stay limited under the company's territory-protection policy.
The company unveiled a value-up plan targeting higher overseas/new-business revenue share and margins by 2028, though its overseas directly-operated units remain unprofitable.
As part of expanded shareholder returns, the company has laid out plans for quarterly dividends and treasury share buybacks/cancellations.
Kyochon F&B is one of Korea's pioneering chicken franchise operators, built around its Kyochon Chicken brand, with the vast majority of revenue generated by its domestic franchise business.
According to media reports, domestic franchise sales account for roughly 94% of total revenue, with the remainder split between the global business and the sauce/packaging/new-business segments.
In 2025, global business revenue was about KRW 14.3 billion, roughly 2.8% of total sales, while new-business revenue was about KRW 14.1 billion, or about 2.7%.
Domestically, the company has long limited new store openings by setting minimum population thresholds per franchise territory, instead focusing on lifting per-store sales. This approach has translated into strong results in average franchise sales and closure-rate metrics.
Overseas, the company operates a total of 84 stores across the United States, Malaysia, Indonesia, the UAE, China, and Taiwan, pursuing expansion centered on the U.S. market through a mix of directly-operated and franchised stores.
On the new-business front, it launched a sandwich and burger brand called "Sosit" in October 2025 and has been expanding distribution of its own craft beer and makgeolli products. Competitively, the company sits alongside bhc and Genesis BBQ in the industry's "Big 3,
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩126.1B | ₩9.3B | 7.4% |
| 2025Q3 | ₩135.2B | ₩11.3B | 8.3% |
| 2025Q4 | ₩131.5B | ₩3.8B | 2.9% |
| 2026Q1 | ₩123.4B | ₩5.3B | 4.3% |
| 2026Q2 | ₩132.3B | ₩7.8B | 5.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩517.5B | ₩8.8B | ₩5.3B | 1.7% | 3.0% | 70.2% |
| 2023 | ₩445B | ₩24.8B | ₩14.3B | 5.6% | 7.7% | 75.9% |
| 2024 | ₩480.8B | ₩15.4B | ₩2.2B | 3.2% | 1.2% | 92.0% |
| 2025 | ₩517.4B | ₩35B | ₩17.6B | 6.8% | 9.3% | 100.1% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
On an annual basis, revenue was KRW 517.5 billion with operating profit of KRW 8.8 billion (a 1.7% margin) in 2022; revenue then fell to KRW 445.0 billion in 2023 while operating profit improved to KRW 24.8 billion (5.6% margin).
In 2024, revenue rose again to KRW 480.8 billion, but operating profit shrank sharply to KRW 15.4 billion (3.2% margin) and owners' net profit fell to about KRW 2.2 billion.
In 2025, revenue climbed to KRW 517.4 billion and operating profit jumped to KRW 35.0 billion (6.8% margin), with owners' net profit recovering to about KRW 17.6 billion.
On a quarterly basis, Q3 2025 operating profit reached KRW 11.3 billion with owners' net profit of KRW 7.6 billion, a strong quarter, but Q4 2025 saw operating profit fall to KRW 3.8 billion and owners' net profit turn negative at about -KRW 1.4 billion.
Entering 2026, operating profit came in at KRW 5.3 billion in Q1 and KRW 7.8 billion in Q2, both down year-on-year. This pattern reflects a combination of prolonged winter avian influenza, higher shipping costs tied to rising international oil prices, and expanded headquarters-borne support for franchisees.
Still, Q2 2026 revenue of KRW 132.3 billion was up year-on-year, indicating the top-line growth trend has continued, leaving room for margin recovery should cost pressures ease.
Korea's chicken franchise market is a mature space where brand rankings shift year to year; bhc became the first operator to surpass KRW 600 billion in standalone revenue at KRW 614.7 billion, cementing the top spot, followed by BBQ at KRW 527.8 billion and Kyochon at KRW 517.4 billion.
While the gap to bhc has widened, BBQ and Kyochon continue to compete closely for second place. Industry observers note that overall market growth has slowed amid consumer price sensitivity and intensifying brand competition.
On the cost side, chicken prices rose to KRW 5,308 per kilogram in April 2026 before stabilizing somewhat, yet remained about 17% above year-earlier levels as of late August, keeping cost pressure elevated across the sector.
Competitor bhc has focused on new product launches and automation such as frying robots to improve operational efficiency, while BBQ has stepped up overseas infrastructure investment to expand globally.
Kyochon, by contrast, has maintained a comparatively defensive domestic marketing approach and a territory-protection-driven store opening policy, with its overseas business seen as lagging by comparison.
In its value-up plan announced in March 2026, the company set targets of over 8% annual revenue growth and around a 10% operating margin by 2028, aiming to open 100 new stores each domestically and overseas while raising the combined global/new-business revenue share from about 5.5% in 2025 to over 10% by 2028.
More recently, reports indicate the company is pursuing master franchise (MF) arrangements to grant operating rights to local partners overseas in exchange for royalty income, diversifying its overseas expansion approach.
A company representative has said the plan for the second half is to stabilize raw material supply and strengthen the menu lineup to boost brand competitiveness, targeting demand around the traditional "boknal" chicken-eating season and year-end peak periods.
At the same time, the company has also shared cost burdens with franchisees and consumers, including a 10% price increase on frying oil supplied to franchisees in April 2026.
Domestically, large-scale sporting events scheduled for the second half of 2026 have been cited as a potential driver of chicken demand, while overseas, normalization of performance following the U.S. flagship store renovation and growth in China and Southeast Asia are seen as key variables.
On shareholder returns, the introduction of quarterly dividends and a treasury share buyback/cancellation program are in the implementation stage.
The company's net profit contracted sharply in 2024 before turning to recovery in 2025, and the multiple linking share price to earnings has moved in line with that earnings trajectory.
The share price has been described as trading relatively close to book value, a range where neither a large premium nor a large discount to net assets stands out.
On shareholder returns, the company has a track record of raising total dividend payouts even during periods of weak earnings in recent years, and its announced plans for quarterly dividends and treasury share buybacks/cancellations are factors that could influence dividend-related metrics going forward.
DS Investment & Securities stated in an April 3, 2026 report that it expected the dividend yield based on projected 2026 dividends to reach an attractive level. That projection, however, was based on earnings estimates at the time of publication and could be revisited as subsequent earnings trends evolve.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Consolidated operating profit rose sharply to KRW 35.0 billion in 2025 from KRW 15.4 billion in 2024, with the operating margin improving from 3.2% to 6.8%. Owners' net profit likewise jumped from about KRW 2.2 billion to roughly KRW 17.6 billion, marking a clear earnings recovery. This momentum carried through Q3 2025, when quarterly operating profit reached KRW 11.3 billion.
Kyochon's average franchise store revenue was about KRW 780 million in 2025, well above the top-five peer average, and its Q1 2026 closure rate was 0.0%, far below the industry average of 12.0%. This is attributed to years of territory-protection policy and a cautious store-opening strategy. Stable per-store economics are seen as a foundation supporting headquarters revenue.
The company has set a target of lifting operating margin to around 10% by 2028 while more than doubling the combined revenue share of global and new businesses.
It has simultaneously announced a high-dividend policy, quarterly dividends, and a treasury share buyback/cancellation plan, signaling intent to expand shareholder returns.
A track record of raising total dividend payouts even during years of volatile earnings is cited as a factor lending credibility to these commitments.
Operating profit fell 50.6% and 15.7% year-on-year in Q1 and Q2 2026, respectively, driven by a combination of prolonged winter avian influenza, raw material price increases linked to Middle East tensions, and higher shipping costs from rising international oil prices.
The first-half operating margin fell from about 8.0% a year earlier to 5.1%, prompting commentary that profitability slipped even in the first year of the company's 10% operating margin target.
The U.S. subsidiary posted net losses in both 2024 and 2025, and the number of U.S. stores fell from four in 2024 to one in 2025. Global business revenue plunged 26.3% year-on-year to about KRW 14.3 billion in 2025, and the new-business revenue share stood at just 2.7% per the business report.
Observers note a significant gap remains between the 2028 target of doubling overseas/new-business revenue share and current performance.
In the domestic chicken market, bhc has widened its lead after becoming the first operator to surpass KRW 600 billion in standalone revenue, while BBQ and Kyochon remain locked in close competition for second place.
Analysts also point to slowing overall market growth amid consumer price sensitivity and intensifying brand competition. Issues touching on consumer trust, such as past "shrinkflation" controversy, are also cited as factors that could weigh on brand perception.
Chicken prices rose to KRW 5,308 per kilogram in April 2026 before stabilizing somewhat, yet remained 17% above year-earlier levels as of late August.
A prolonged avian influenza outbreak could reignite cost pressure, and given the company's practice of absorbing part of price increases at the headquarters level, this could directly affect profitability.
With the U.S. subsidiary posting consecutive losses and a reduced store count, it remains unproven whether the shift toward a master franchise model will deliver results as planned. Uncertainties remain around region-specific regulations, local partner capabilities, and the payback period for initial investments.
The practice of the headquarters absorbing part of cost increases protects franchisees in the short term but burdens headquarters profitability.
Additionally, if consumer-trust issues similar to the past boneless-chicken portion-size controversy resurface, this could negatively affect brand image and sales, while the possibility of tighter franchise-related regulation also remains a latent variable.
During the Asian Games held in Aichi-Nagoya, Japan, it will be worth checking whether the sporting event drives a boost in chicken demand.
Q3 results should be checked for whether raw material costs have stabilized and to what extent the operating margin has recovered.
This period will show how well seasonal boknal and year-end demand is captured, alongside a check on the execution of the treasury share buyback/cancellation and quarterly dividend plans.
It will be important to continue monitoring chicken price trends and any news of new master franchise contract signings.
Kyochon F&B achieved a marked earnings recovery in 2025, with revenue and operating profit both improving significantly, but the first half of 2026 saw operating margins slip again amid prolonged avian influenza and rising raw material costs.
Core operating metrics such as domestic franchise sales and closure rates remain among the best in the industry, suggesting the underlying business foundation is solid.
On the other hand, overseas and new businesses still account for a small share of revenue, and the U.S. subsidiary has posted consecutive losses, leaving a gap between the growth and profitability targets set through 2028 and current performance.
The company has laid out concrete execution measures—leveraging master franchise arrangements, introducing quarterly dividends, and pursuing treasury share buybacks/cancellations—as part of its value-up drive.
Key things to watch going forward will be the pace of cost stabilization, whether overseas operations turn toward profitability, and how much of a boost second-half sporting events provide to results.
Report written 2026-09-05 · Data as of 2026-09-04
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